Unemployment

Question 1

What are the different types of unemployment?

Answer 1

-Classical
-Cyclical
-Structural

Question 2

What is classical unemployment?

Answer 2

When wages rise, unemployment rises

Question 3

What is cyclical unemployment?

Answer 3

When a fall in demand leads to unemployment increasing

Question 4

What is structural unemployment?

Answer 4

Structural and Technological changes leading to unemployment rising

Question 5

How is unemployment measured?

Answer 5

-People without a job, want a job, and have actively sought work in the last four weeks and are able to start work within the next two weeks or
-are out of work, have found a job, and are waiting to start in the next two weeks

Question 6

Disadvantages of unemployment

Answer 6

-Loss of tax revenue
-Government spending increases
-Fall in living standards
-Stress and health problems of being unemployed

Question 7

What is an advantage of unemployment?

Answer 7

Retrain and increase job prospects